You want to start making vids but let's face it camcorders are expensive! When I started to researching camcorders I found that they make hybrid cameras. These cameras take both quality video and stills, and some also include mp3 players or can be used as webcams. They also come with expandable memory so you can take all the video you need.

I use the Aiptek Pocket DV 5300. It has vid/still/webcam capability, I got it on ebay for $56.30(w/shipping.) Editing software was included. The only problem is it goes through AAA batteries like crazy. My father got a more expensive model for $110 (retail) that uses AA batteries and doesn't have that problem.